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India's Satyam Q1 net profit climbs 86.3 percent, beats forecast
Bangalore, India (AFP) Jul 21, 2006 Satyam said net profit hit 3.5 billion rupees (78 million dollars) for the three months to June on revenues which climbed 36.9 percent to 14.4 billion rupees, allowing it to hike its full-year earnings forecast. New York-listed Satyam's profit beat analysts' estimates of around 2.93 billion rupees while revenues eclipsed expectations of 13.96 billion rupees. Earnings per share (EPS) climbed 82.7 percent to 10.87 rupees, according to the results compiled using Indian accounting rules. "Revenue and EPS for the first quarter have exceeded the forecast range on the back of robust volume growth and a favourable exchange rate movement," chairman Ramalinga Raju said in a statement. The export-dependent sector has benefited from a declining rupee, which makes its services cheaper for overseas buyers. Satyam, which makes business software and is based in southern Hyderabad city, added 34 clients during the quarter. The company's shares rose by up to three percent to a day high of 709.95 rupees before sliding to close down 0.28 percent or 1.95 rupees at 686.6 rupees against a falling market. Satyam raised its full-year revenue growth forecast to 29.3-31.2 percent from the previous 25.2-27.3 percent, with EPS growth put at 27.5-29.5 percent from 18-20 percent. "Revenue growth has been fuelled by a 7.2 percent increase in volumes and a higher contribution from offshore," company chief Raju said. Satyam was the last of India's four software giants to report first-quarter results. Profit at the biggest, Tata Consultancy Services, rose 33 percent to 8.63 billion rupees, with second-placed Infosys Technologies up 50.3 percent to 8.0 billion rupees and third-ranked Wipro up 44.9 percent to 6.20 billion rupees. "The Satyam numbers were better than expected. We're confident the top-tier software firms -- Infosys, TCS, Wipro and Satyam -- will sustain their business momentum and volume growth through outsourcing deals in coming months," said Parul Inamdar, software analyst at brokerage Prabhudas Lilladher. The outsourcing boom has been fuelled by foreign companies, mainly US, seeking to take advantage of its vast pool of less expensive, educated, English-speaking software engineers and workers. But a shortage of skilled manpower poses an increasing problem and there is concern about mounting wage costs in a fiercely competitive recruiting battle. "Besides enhancing monetary benefits we're also focused on creating an organisational environment which will help us attract and retain the best talent," Raju said. Raju said Satyam completed its acquisition of British consulting firm Citisoft Plc which has offices in London, Boston and New York, and recruited 1,123 employees during the quarter to bring staff strength to 27,634. Community Email This Article Comment On This Article Related Links All about the technology of space and more
Google tool bar seekers tricked into downloading computer virus: security firm
San Francisco (AFP) Jul 21, 2006 Computer hackers built a fake Google Tool Bar website to trick people into downloading a malicious program that could turn machines into "zombies," a US Internet security firm said on Friday. |
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